Oil and Gas Contractor's Web Directory Presentation (1).pptx

8/22/2019 Oil and Gas Contractor's Web Directory Presentation (1).pptx

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OIL & GAS CONTRACTORSPLUS

Broker Presentation


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Peace Hills has written commercial insurance for oil and gascontractors for a number of years but our appetite within this classhas been somewhat restricted.

Our liability wording update presented an opportune time to reviewthe coverage we were providing to oil and gas contractors as well as

the classes of contractors that fell within our appetite.

Our findings indicated a need to:

broaden our appetite to include some additional oil and gas riskclasses

develop a better, more competitive coverage package

and so we have.

Introducing . . .

Introduction


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Oil and Gas Contractors Plus

A Commercial Insurance

product tailored to meet

the needs of independent contractors performing

operations in the Oil & Gas field

by


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Minimum 3 years in business*

Minimum 1 year doing the same type of work

Maximum $750,000 gross receipts* Operations restricted to within Canada

No more than one loss exceeding $10,000 or two losses of anysize within the last 3 years

Operations must fall within the Target Classes listed

*Some flexibility permitted. Please contact your Peace Hills underwriter.

General Eligibility Requirements


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Consultants(including Safety consultants), with hands-on or no hands-on exposure, andcontractors engaged in any of the following eligible classes:

Battery Operators (including incidental pigging of feeder/ gathering lines), FieldOperators/Pumpers, Oilfield

Maintenance with hands-on exposure.oNoconsulting work, electrical or mechanical maintenance or repairs to production equipment or workinvolving repair of valves greater than 4

Electrical ContractorsNoprocess control installations

No Instrumentation

Excavating Contractors

Fence Construction Contractors

Nowelding

TARGET CLASSES


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Geologists (Well Site) NoE&O cover for analysis

Grass Mowing contractors including Incidental weed sprayingwith backpack sprayers Nounlicensed spraying applicators

No spraying using a boom

Insulation Contractors Noasbestos abatement

Landman (Land Agents)

Land Reclamation Contractors Noremediation

TARGET CLASSES


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Lease clearing & Site Preparation Contractors No land remediation operations

Noburning of any kind

Lease Road Construction and Maintenance

Noice road construction / maintenance over bodies of water

Painting Contractors No work in gas plants or refineries

No application of special coatings, liners

Pipefitting Contractors

TARGET CLASSES


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Sandblasting Contractors No work outside of the oil patch

Nolead abatement

Seismic Clearing Contractors Noburning operations

Seismic Drilling Contractors Nouse of explosives

Nosetting or shooting the charges

Site Supervisors

TARGET CLASSES


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Snow Removal Contractors No Municipal or outside of oil patch

Steam Cleaning/Thawing No other use of equipment such as cleaning equipment or buildings

outside of the oilfield and Nocleaning of inside of tanks

Welders, Oilfield only with B Pressure Oilfield WeldingCertification No hot tapping or hot line tie-ins

TARGET CLASSES


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Crude Oil, Condensate or Water Hauling

Drilling Contractors - Oil or Gas Wells

Environmental Contractors / Consultants

Equipment Haulers

Fishing Contractors

Hot Shot Services

Instrumentation Technicians

INELIGIBLE CLASSES


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Maintenance, Service, Installation & Repair of:

Blow Out Preventers

Fishing tools

Mud motors

Mud pumps

Pigs

Power tongs

Shock tools

Stabilizers

Stuffing boxes

Sucker rods

INELIGIBLE CLASSES

Slickline Stuffing Box


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Offshore operations of any kind

Operations outside of Canada

Owners of producing or refining properties

Picker Service, Crane Operations

Pigging of Larger Diameter Pipelines

Pilot Vehicles

Pipeline construction contractors

INELIGIBLE CLASSES


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Remediation Contractors

Testing Contractors (Non-Destructive Testing)

Vacuum Truck Operators with or without

Pressure Truck Operations

Wireline Services

INELIGIBLE CLASSES


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OILFIELD CONSULTANTS

Are individuals who: have a combination of formal training and hands on

experience

are contracted as independent contractors by Oil Companiesfor their area of expertise

are hired to act in a supervisory type role

Peace Hills Insurance does not accept generic consultants or

those whose area of expertise falls within the Ineligible Classeslisted above

Ask for specific details of their area of expertise

About Consultants . . .


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SAFETY CONSULTANTS

Consult and inspect job sites to ensure workers are meeting safetyrequirements

Liaise with the Oil Company to help prevent injury losses

Work on loss control issues

Provide safety training using material by the Oil Company,Occupational Health and Safety or other organization recognized inthe Industry

Peace Hills Insurance does not wish to entertain Safety Consultantswho design / write their own training material, safety guidelines ordevelop their own safety programs

About Consultants . . .


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A fully completed Oil

and Gas CommercialLiability InsuranceQuestionnaire should

capture most of therelevant details we need to determine the eligibility of

the risk and

appropriately price the risk

This form is available on ourwebsite now

QUESTIONNAIRE


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All Oilfield Welders must

complete the Oilfield

Welding Operations

Supplement(last 2 pages of the Oil and

Gas Questionnaire form)

QUESTIONNAIRES


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Description of Operations

Paramount to have a full understanding of the applicants operations not only limited to a specific contract but for operations the applicant could do or is

qualified to do

obtain past experience

Consulting only or and Hands-On work?

Any decision making? If so, on what basis?So that we may determine the hazard level, we need to know:

If the applicant merely consults by observing or reporting to Oil Company

If the applicant is involved with direct supervision for the Oil Company

If the applicant is involved in hands-on work

Questionnaire Form Key Areas


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Area of Expertise

In what area is the applicant working?

Site preparation / set up / road construction

Seismic work: Clearing land / drilling / setting charges

Oil / Gas drilling operations

Oil / Gas servicing operations

Oil / Gas shut downs or workovers

Pipeline supervision / inspecting / construction

Who signs off on completed work?

Is applicant supervising / inspecting any welders or their work? If so, any hands on workfor applicant?

Is work followed up by x-ray inspectors or hydrostatic test?



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Education & Qualifications

What are applicants academic qualifications

What certificates does applicant hold Welders must have held a Provincial or Red Seal Pressure Welders Ticket for

a minimum of two years (three years preferred)

What was past employment in the Oil patch or otherwise

How is he/she qualified to give these opinions

Most consultants lack any sort of professional accreditation



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Loss Experience & Job Experience

Obtain prior loss history whether insured or not

Applicant must have a minimum of one year experience, but three years is

preferred. A minimum of two years experience is required for welders. We consider number of years experience in related field. Experience in other

areas may be considered relevant or not, so should also be reported

Territory of Operations

Watch for consultants going offshore or outside of Canada

Watch for applicants involved with sales, installation or manufacturing forworldwide exposures. Worldwide policy

should be obtained elsewhere.



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Rating Basis

Gross Revenue

Is the total revenue for all operations prior to any deductions foroverhead costs / operating expenses

taxes

cost of materials / supplies

salaries / wagescost of sub-let work

is not take home pay or profit

Obtainnumber of employees

number of contract employees

cost of all sub-let workconfirmation subcontractors supply proof of insurance

limit of insurance subcontractors are required to carry

Does applicant have manpower needed to effectively fulfill terms of the contract?

Does the gross revenue figure reported make sense?



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Minimum coverage includes:

$2,000,000 Commercial General Liability Coverage Form 7001(2012 revision). (up to $5,000,000 limits available)

Plus Liability (Oil & Gas Contractors) Form 9052

Oil & Gas Contractors Plus Form 9025

Any other Peace Hills Insurance standard Commercial Property /

Casualty coverage form may be added as requiredsubject to separate deductibles and premium charges if applicable

Coverage Package


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Plus Liability (Oil & Gas Contractors) Form 9052

The PLUS Forms

Amendments to Definitions

o Pollutants amended to include the products used in or generated by oil or gasexploration, development or production including oil, gas, condensates, saline ordrilling fluids

o

Professional Services amended to include geoscience, detection or scanningservices

o Offshore operations definition added

o Oilfield consultant definition added (not professionals)

o Professional definition added

o Underground property definition added

Forest Fire Fighting Expense ($250,000 sub limit) $2,500 Ded

Oilfield Towing ($50,000 sub limit) $1,000 Deductible


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Pollution Deductible Endorsement

o Spills Deductibles

Territorial Limitation Endorsement

o Coverage Territory restricted to Canada only

SPF #6 Non Owned Automobile

SEF 99 (Excluding long term lease vehicles)

SEF 94, $50,000 All Perils, $1,000 Deductible Legal Liability forPhysical Damage to Hired Automobiles

The PLUS Forms


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The PLUS Forms

Contractors Equipment ($25,000 Unscheduled ) $1,000Deductible

Contractors Miscellaneous Tools ($10,000 Unscheduled)$1,000 Deductible

When scheduled equipment or tools are added, the following optionalcoverages are also available:

o Contractors Equipment Replacement Cost Endorsement

o Rental Reimbursement Coverage, $1,000 per day / $10,000 aggregate

o Ice and Muskeg Extension Form, $2,500 deductible

Motor Carrier Cargo Legal Liability ($25,000 Unscheduled) $2,500Deductible

Oil & Gas Contractors Plus Form 9025


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No coverage provided for bodily injury or property damagearising out of, caused by or contributed to by

the wilful violation of any procedural or safety regulations any hot tap or hot tie-in operations conducted by or on behalf of the

Insured

welding operations performed for demolition or salvage work

welding operations by any person who has not been tested andcertified to perform such work

Welding Operations LimitationEndorsement and Welding Warranty


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Warranty:

Minimum qualifications met, appropriate tickets

Flammables within 40 ft. removed or protected by non-combustibleprotective cover during welding operations

Minimum 20 lb. ULC listed fire extinguisher kept within 20 ft. ofwelding operations

Purging procedures adhered to Fire watch maintained for at least 30 minutes after shutdown of all

torches, electrodes or any open flame

Welding Operations LimitationEndorsement and Welding Warranty


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1. Does Oil & Gas Contractors Plus provide Contractors Limited

Pollution Coverage?

Oilfield contractors often required by contract to have Contractors Limited PollutionEndorsement

.This is the name of an endorsement form used by another company that includes :

1. coverage for spills from the operating parts of contractors equipment2. Coverage for contractors bringing pollutants onto site providing spill fromsuch is discovered within 120 hours and reported within 120 hours of discovery

Peace Hills Insurances standard CGL (2012 version). Includes coverage for spills from the operating parts of contractors equipment. Does not include pollution coverage for contractors bringing pollutants onto site at

this time. This coverage is currently in the development stages and will beavailable for selected risks in

the very near future.

FAQ


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Majority of the eligible risks we write do not bring pollutants

onto site and should be able to have that insurancerequirement in their contracts waived.

Tidy tanks from which contractors refuel their contractorsequipment maybe brought onto site by:

Lease Site or Seismic Clearing contractors

Seismic Drilling contractors

Lease Site Preparation, Road Construction/Maintenance contractors

Excavation contractors

Herbicides brought onto site by weed spraying contractors mayalso be considered to be pollutants

FAQ


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2. Will Peace Hills provide Waivers of Subrogation endorsements?

.Some oil companies indicate in the insurance requirements sectionof their contracts that the contractors policy must contain a waiverof subrogation

. Some oil companies will accept being added as Additional Insured as

this provides a legally implied waiver of subrogation

. Some will only accept a Waiver of Subrogation endorsement

. Peace Hills Insurance does not normally permit a Waiver ofSubrogation on Liability policies, however, if the oil company will not

accept the implied waiver via Additional Insured status and will notwaive this contract requirement, we will provide a waiver ofsubrogation. It will be restricted to work performed by the Insuredunder the specific contract number. You must provide us with thecontract number.

FAQ


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3. Can we add Additional Insureds with 30 Days notice ofCancellation/Termination?

Yes, provided we are supplied with the name and address

and the nature of their interest in our policy.

We cannot provide notice of Cancellation/Terminationwithout an address.

The nature of the Additional Insureds interest in our policywill tell us which endorsement is the most appropriate touse.

FAQ


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4. Should we be adding the Principals as Named Insureds orAdditional Insureds?

It is not necessary to add the principals as Named Insureds.The principals of a corporation are automatically includedunder Section II - Who Is Insured in our CGL wording.

Adding a principal as an Additional Insured would reduce the

coverage available to them under the standard CGL wording.

FAQ


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5. Does our wording provide Contingent Employers Liability?

Yes, via exceptions (i) and (ii) of Exclusion d. Employers Liability:

This exclusion does not apply to:

(i) Liability assumed by the Insured under an insured contract; or

(ii) a claim made or an action brought by a Canadian resident

employee on whose behalf contributions are made by or required tobe made by you under the provisions of any Canadian Provincial orTerritorial Workers Compensation law if cover or benefits have beendenied by any Canadian Workers Compensation Authority.

FAQ


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6. Does our wording provide Contractual Liability?

Yes, again by exception to Exclusion b. Contractual Liability:

This exclusion does not apply to liability for compensatory damages:

2) Assumed in a contract or agreement that is an insured contract,

provided the bodily injury or property damage occurs subsequentto the execution of the contract or agreement. . .

The definition of insured contract lists a number of specificcontracts or agreements and also includes:

That part of any other contract or agreement pertaining to your businessunder which you assume the tort liability of another party to pay forcompensatory damages because of bodily injury or property damageto a third person or organization, provided the injury or damage is causedin whole or in part by you or by those acting on your behalf.

FAQ


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7. My brokerage already has some oil and gas contractors and

consultants written with Peace Hills. What will happen tothose policies on renewal?

. The Oil and Gas Contractors Plus forms will be added at renewalwhich may replace some of the existing wordings

. Renewal premiums will be quoted to you. The premium may belower than last term despite providing additional coverages. Youmay choose to accept the lower pricing or you may choose to renewat the same price as the previous term so that you dont reduce yourcommission income

. Large increases in premiums are not anticipated unless the Insuredsbusiness operations or anticipated gross revenue has changed orboth. You may discuss the reason for the increase with yourunderwriter.

. We may ask that you have an Oil and Gas Questionnaire completed

to augment or update the information we have on file

FAQ


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Your Commercial Lines Underwriterwill provide you with a quotation

A completed questionnaire form is not required to provide a quote butwe do require sufficient information to be able to determine eligibility,to assess the risk, and to determine our terms and conditions

We can quote over the phone or by email, provided sufficientinformation is provided

Contact your Commercial Lines Underwriter to bind coverage

A completed questionnaire form will be required within 60 days ofbinding coverage

We will not be extending quoting / binding authority to our brokers atthis time

Quoting and Binding


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Competitive Pricing

Our pricing was set up to be competitive with other major carriers in

the market place. See the examples below:

Battery Operator, 3 years experience / in business, no losses,$100,000 gross receipts

$2,000,000 CGL, $1,000 Property Damage deductible

$250,000 Forest Fire Fighting Expense, $2,500 Deductible$50,000 Oilfield Towing, $1,000 Deductible

Pollution Deductible Endorsement (Spills Deductibles)


$2,000,000 SPF #6 Non Owned Automobile including SEF 99

$50,000 All Perils SEF 94, $1,000 Deductible

$25,000 Unscheduled Contractors Equipment, $1,000 Deductible

$10,000 Unscheduled Contractors Miscellaneous Tools, $1,000 Deductible

$25,000 Unscheduled Motor Carrier Cargo Legal Liability, $2,500 Deductible

@ $950


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Lease Site Preparation Contractor, 3 years experience / in business,

no losses, $250,000 gross receipts


$250,000 Forest Fire Fighting Expense, $2,500 deductible

$50,000 Oilfield Towing, $1,000 deductible

Pollution Deductible Endorsement (Spills deductibles)Territorial Limitation Endorsement


$50,000 All Perils SEF 94, $1,000 deductible

$25,000 Unscheduled Contractors Equipment, $1,000 deductible

$10,000 Unscheduled Contractors Miscellaneous Tools, $1,000 deductible

$25,000 Unscheduled Motor Carrier Cargo Legal Liability, $2,500 deductible

@ $1,450

Competitive Pricing


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Competitive Pricing

Pipefitter, in business 4 years, no losses, $195,000 gross revenue,Third Party engineer signs off on all work . . .



$50,000 Oilfield Towing, $1,000 deductiblePollution Deductible Endorsement (Spills deductibles)





$10,000 Unscheduled Contractors Miscellaneous Tools, $1,000 deductible

$25,000 Unscheduled Motor Carrier Cargo Legal Liability, $2,500 deductible

@ $1,750


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Oilfield welder, in business 7 years, B pressure ticket, no losses, no hottie-ins, no pipeline construction, no general welding, $225,000 grossrevenue, Third Party inspects/approves work



$50,000 Oilfield Towing, $1,000 deductiblePollution Deductible Endorsement (Spills deductibles)





$10,000 Unscheduled Contractors Miscellaneous Tools, $1,000 deductible$25,000 Unscheduled Motor Carrier Cargo Legal Liability, $2,500 deductible

@ $2,500

Competitive Pricing


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Your continued support is greatly appreciated

Maintaining profitable results and growing our book of business

in this sector will allow us to consider further expansion of ourappetite down the road

Call yourunderwriter for a quote today!

Come grow with us

Documents

Oil and Gas Contractor's Web Directory Presentation (1).pptx